Magic of maths: harnessing the excess growth from portfolio volatility

In the aftermath of the global financial crisis, s
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Ohio STRS warns of higher US recession risk; prioritises liquidity

Ohio STRS warns of higher US recession risk; prioritises liquidity

The State Teachers Retirement System of Ohio has warned of a “material” increase in US recession risk compared to last year as the fund braces for a wider, “negatively skewed” distribution of outcomes in the next 12 months. It came as the mature plan, which is 81 per cent funded, is tilting to fixed income and new asset classes like liquid alternatives over equities.

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CalPERS mulls leverage

The board of the United States’ largest pension fund calls in the experts as it considers applying leverage in its portfolio, part of efforts to improve a 68 per cent liability-funding ratio.

The governance-performance link

Academics at Switzerland’s University of St. Gallen find that governance is positively related to both excess and risk-adjusted net returns but only marginally related to funds’ asset choices.

GPIF, ADIA: complex success

Japan’s GPIF has only recently moved into equities, while ADIA has a rich history of investing in a variety of asset classes. The returns of both giants show the benefits of diversification.

Fund braces for geopolitical risk

SEB has restructured its risk factor portfolio and raised the allocation to senior secure loans within its large alternatives portfolio. The changes address rising global uncertainty.

Sampension seeks more control

As the Danish labour market pension fund puts more into alternatives and illiquid assets, it is also in talks with managers to increase its control over investment decisions and lower its costs.

Allocation changes are optional

The $12.5 billion School Employees Retirement System of Ohio decided realigning its portfolio was a better path to its goals than new asset allocation, CIO Farouki Majeed writes.

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